New ITR Forms to be Released by January 2026: What Does it Mean for Taxpayers?

The Income Tax Act, 2025, is set to take effect from April 1, 2026, replacing the old Income Tax Act, 1961. The Central Board of Direct Taxes (CBDT) chairman, Ravi Agrawal, has recently shared that the new ITR forms and rules under the Income Tax Act 2025 will be notified by January 2026. While speaking to the reporters after inaugurating the Taxpayers’ Lounge at the India International Trade Fair (IITF), he said that the changes are under preparation and aim to make the ITR forms simpler and clearer.

The new Act eliminates the old and unnecessary provisions and simplifies the old language. The number of sections has been reduced from 819 to 536, and the chapters have been cut from 47 to 23. It should be noted that the Income Tax Act, 2025, does not bring changes to any tax rates, but instead it makes the law easier and taxpayer-friendly.

Once the rules are notified, the taxpayers will see new formats and a more streamlined system designed to reduce confusion and ease compliance.

As per Agrawal, the department is designing the new forms and aims to notify them in January, allowing the taxpayers to adjust their systems accordingly. The forms are being revised in a way that makes them more taxpayer-friendly. Once the law department reviews the changes, they will be presented before the parliament.